Daily ShareChat: AMP NZ Office Trust

By Jenny Ruth

AMP NZ Office Trust (APT)'s $16.1 million in distributable profit for the three months ended September was slightly ahead of his forecast due to higher rental income than expected, says Forsyth Barr analyst Jeremy Simpson.

Rental income rose 7% to $35 million.

"APT benefited from receiving back rent from 2009 that was delayed as a result of rental negotiations and also lower interest costs, given its recent large capital raising," Simpson says.

Distributable profit per unit was down 17% at $1.61 due to dilution from the $201.3 million rights issue completed in June.

Simpson says APT's manager has been under pressure from the investment community to improve the alignment of its interests with those of its investors and the manager is considering moving from a base fee only to a lower base fee plus an incentive component.

"We view this announcement as very positive," he says. Management fees on the largely vacant 21 Queen St, Auckland property will be cut 50% and will increase as the building is leased with the full fee earned once it is 75% leased.

"Although occupancy is only 4.5%, interest from potential tenants continues to build and we would not be surprised to see further leases signed up over the next few months."

Recommendation: accumulate.

Daily ShareChat articles report how the main experts in the market might view a certain share and we provide this commentary as a useful resource for investors. Content on this site does not in any way constitute a recommendation to buy, hold or sell any particular share. Investors should always seek professional advice before making any investment decisions.

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Printable version

Related News

Daily ShareChat: AMP Office Trust
Property trust management fees issue divides sector
ANZO investors ignore ACC warnings, vote for corporatisation
AMP NZ Office offers to give up more ground
Daily ShareChat: AMP Office Trust
ANZO pinches another Goodman executive in lead-up to restructure
AMP Office restructuring still disappointing: Tyson
AMP NZ Office manager still reaps big fee
Daily ShareChat: AMP Office Trust
AMP NZ Office annual earnings rise

Get quotes for AMP NZ Office Limited Ordinary Shares (APT)